This is the second successful case initiated by Illinois agents in a prgram adiminstered by the USDA Risk Management Agency who claims to “regulate” this business. Illinois has gained nearly $5,000 from the IL agents activities.
Isn’t this similar to a dividend of a mutual company? The dividend amount depends on the amount of insurance premiums you pay… the most insurance you have, the more premiums you pay…
Not the same thing. Dividends are declared by the Insurance Company’s board of directors, usually if the company has had a profitable year. They cannot be guaranteed. Dividends are paid to policyholders who are also the owners of a mutual company.
In the case of Farm Credit, Farm Credit is the insurance broker, not an insurance company. Being a large organization, if rebating were legal, they could drive small brokers out of business via the rebate enticement, thus creating an anti-competitive environment. Rebating has been and still is illegal in all states except California and Florida.
This is the second successful case initiated by Illinois agents in a prgram adiminstered by the USDA Risk Management Agency who claims to “regulate” this business. Illinois has gained nearly $5,000 from the IL agents activities.
Isn’t this similar to a dividend of a mutual company? The dividend amount depends on the amount of insurance premiums you pay… the most insurance you have, the more premiums you pay…
Not the same thing. Dividends are declared by the Insurance Company’s board of directors, usually if the company has had a profitable year. They cannot be guaranteed. Dividends are paid to policyholders who are also the owners of a mutual company.
In the case of Farm Credit, Farm Credit is the insurance broker, not an insurance company. Being a large organization, if rebating were legal, they could drive small brokers out of business via the rebate enticement, thus creating an anti-competitive environment. Rebating has been and still is illegal in all states except California and Florida.